Human decision behavior is highly complex and can be influenced by a wide variety of factors. Researchers typically try to simplify consumer preferences and choices. We try to replicate a complex reality using a model that captures the main drivers of choice.
Conjoint analysis is one very effective method for isolating these drivers. A product is broken down into its most essential characteristics or elements, allowing researchers to examine how each one affects preference. Random Utility Model (RUM) is the most commonly used conjoint model, which assumes consumers select the product that offers them the best value (a.k.a. utility) based...